ColorXATR: Smoothed ATR Trend Strength Indicator
Summary
ColorXATR is a chart indicator that smooths the Average True Range and displays the result as price-chart points. Its color is intended to distinguish strengthening trends from weakening ones: red indicates strengthening and yellow indicates weakening. Users can set the ATR period, smoothing method and depth, smoothing parameter, and horizontal shift.
The indicator supports ten averaging approaches, ranging from simple and exponential averages to adaptive and specialized smoothers such as JMA, T3, VIDYA, and AMA. The description cautions that the phase or related parameter has different meanings across methods, and some methods use fixed internal settings. The document explains configuration and interpretation, but gives no trading rules, validation, or performance evidence. It also notes a dependency on a MetaTrader smoothing library, so implementation requires that library in the expected location.
Key ideas
- ColorXATR smooths ATR and plots the result in price-chart points.
- Red denotes a strengthening trend and yellow denotes a weakening trend according to the indicator description.
- Users can choose among ten smoothing methods and configure period and smoothing inputs.
- The phase parameter has method-specific meanings, so its interpretation depends on the selected smoother.
- The description provides no evidence that the indicator predicts returns or improves trading results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.